Vietnamese battery electric vehicle (BEV) manufacturer, VinFast Auto, is prioritising expansion in Asia in the short term, with the US and Europe receiving secondary focus.

This decision is due to rising logistics costs and the need to allocate internal resources effectively.

During the company's shareholders meeting in Hanoi at the end of last month, Pham Nhat Vuong, Chairman of VinGroup - the parent company of VinFast - confirmed that the automaker has shifted its focus to expanding in Asia in 2025, particularly in Vietnam, Indonesia, India, and the Philippines.

The company is scheduled to complete the construction of a BEV plant in Indonesia in the third quarter of 2025, with production operations expected to commence in October, following the securing of a syndicated loan of up to US$ 193 million from local banks in early May.

Additionally, VinFast has entered into partnerships with local aftermarket service providers this year. VinFast also confirmed that it is set to begin the construction of a US$ 500 million BEV plant in Tamil Nadu, India, at the end of June.

The facility is expected to have an annual production capacity of 150,000 vehicles, with completion scheduled for 2026.

Vuong stated: "VinFast will temporarily pause its expansion plans in the US, Canada, and Europe due to high logistics costs. The US\$4 billion factory in North Carolina will also delay its operational start to 2028, as we await clearer market signals."

He noted that Western markets have not "fully embraced emerging electric vehicle manufacturers" and explained that the decision to delay expansion in these regions would help preserve cash flow.

Vuong confirmed that VinFast has set a sales target of 200,000 BEVs in Vietnam this year, more than double the 97,000 units sold in 2024, aiming to account for nearly 40% of the country's total vehicle market.